Volume 10, Issue 20- Wednesday, May 16, 2018
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.
Ready or not, self-driving cars are on our streets. New and disruptive automotive technology is destined to change lives, laws, industries and major sectors of our economy. But first...self-driven cars must be tested and that's the stage we are experiencing now. 

Concerns over the safety of autonomous vehicles increased in January when an Uber test car struck and killed a pedestrian in Arizona. In spite of the tragedy, states are moving quickly to allow for autonomous testing. Those willing to assist in overseeing the testing are competing for the attention of companies developing self-driving vehicles. 

The increase of driverless cars on roadways has pushed elected officials at both the state and local levels of government to pass laws and regulations related to passenger safety. Currently, 22 states have laws regulating or relating to self-driving cars and 10 states have approval from USDOT to test autonomous vehicles. 

Goldman Sachs economists predict that driverless rideshare vehicles will cause the ride-sharing industry sector to grow from $5 billion in current revenues to $285 billion by 2030. Driverless cars will become somewhat common on roadways over the next five to 10 years. As for safety, other experts predict that autonomous vehicles will be responsible for reducing the number of driving-related deaths from 40,000 each year to only double or single digits.

Check out the latest article from our Texas Government Insider Newsletter!
Texas- The city of Corpus Christi has been exploring potential sites for a desalination facility to help diversify its water supplies for drought occurrences. The city has applied to obtain a water quality permit with the Texas Commission on Environmental Quality. The proposed facility would be situated on land off La Quinta Road in Gregory, with a discharge route planned into the La Quinta Channel in Corpus Christi Bay. The desalination plant would not exceed a daily flow average of 19.1 million gallons per day. The proposed facility will output water treated for industrial use. Since the plant will be located near the San Patricio Water Municipal District, the water can be further treated to become drinkable. 

According to the Texas Desalination Association, nearly 100 small and intermittent inland desalination facilities across Texas produce 138 million gallons of water per day from the 2.7 billion acre-feet of brackish water in Texas' aquifers. Brackish water has far less salinity than seawater. The biggest desalination facilities in Texas are the Kay Bailey Hutchinson plant in El Paso, which can produce up to 27.5 million gallons of fresh water daily, and the Southmost Regional Water Authority Desalination Plant, which produces 7.5 million gallons a day for south Texas. According to the Texas Water Development Board, the average cost to produce 1 acre-foot of desalinated water from seawater is projected to range from approximately $800 to about $1,400.
Wisconsin- The Wisconsin Policy Forum compiled a report that suggests the Milwaukee County Safety Building should be funded through non-traditional means. Replacing the 89-year-old facility is expected to cost $345 million. That amount would cover replacement of the facility at the current location and temporary replacement services during construction. The report outlined several financing options ranging from full public financing to a public-private partnership (P3). The facility is no longer suitable for the county's justice-related space needs. 

The report is the fourth in the Wisconsin Policy Forum's five-part series looking at local government infrastructure including city hall, the Milwaukee County Courthouse, Milwaukee Police Administration building, the county's Criminal Justice Facility, and the county's Mental Health Complex. If the county pursued a P3, such a strategy would reduce the county's indebtedness. The report states that Milwaukee County would need to find the resources in its operating budget to make room for the substantial annual payments required for a P3 contract. View the report here. 
Maryland- The Maryland Office of the Comptroller is seeking proposals for a $100-million-dollar job to replace the 25-year-old tax processing system. The office released a request for proposals (RFP) with bids due by June 1. The goal is to have a contract before the state's Board of Public Works in September. The plan is to replace the office tax processing system as well as its collection system. 

There was an incident in 2016 where the comptroller's office discovered that $21 million of local income tax had been misdirected going back to 2010. The comptroller's office collected the proper amount of revenue, but some taxpayers were not classified in the correct taxing districts causing tax revenue to be distributed to the wrong municipalities. The RFP requires that vendors have contracts in at least six other states to qualify.
Hawaii- The Honolulu Authority for Rapid Transportation (HART) wants to partner with private businesses to complete and sustain the city's rail system. HART is considering a public-private partnership (P3) to complete the final City Center segment. The last 4.1 mile, 8-station City Center segment, from Middle Street to the Ala Moana Center, is expected to cost $1.6 billion. 

A ground breaking is to be conducted next year for the system to be fully operational by December 2025. HART is also considering awarding a 20-year contract for operations and maintenance of the entire rail system, once it's completed. That would require the new contractor to assume full responsibility of the entire system - the guideway, track and rail cars. Key incentives for the private developer would be the estimated $97 million in transit-oriented development revenue and $141 million of other potential income from HART-acquired properties.
Washington, D.C.- The Federal Transit Administration (FTA) announced that $58.2 million will be used to improve passenger ferry systems. A total of 20 projects in 12 states will receive the funding from the FTA's Passenger Ferry Grant Program. The grants will fund projects to support existing ferry service on many of the nation's waterways, and help to repair and modernize ferry boats, terminals and related facilities. 

The Massachusetts Bay Transportation Authority will receive $6 million to construct a new ferry dock at the Hingham Ferry Terminal in Hingham. The project will include the replacement of the existing ferry dock with an upgraded, fully-accessible ferry dock. The New York City Department of Transportation will receive $6.3 million for two projects: to modify raised platforms and walkways for personnel to safely access Staten Island Ferry vessels when parked at its maintenance facility; and to ensure the Staten Island Ferry is in compliance with federal, state and local environmental regulations. The Washington State Department of Transportation will receive funding for two projects: to construct a new bicycle facility at the Seattle Multimodal Terminal at Colman Dock to enhance safety and facilitate multimodal connectivity; and to modernize terminal and vessel communication infrastructure that has reached the end of its useful life. View all of the projects here.
Washington D.C.- Last month, Washington D.C.'s Office of Public-Private Partnerships (OP3) released a request for alternative proposals- qualifications (RFAP-Q) for the rehabilitation of the Henry J. Daly Building. The building, constructed in 1941, currently serves as headquarters for the Metropolitan Police Department. The office received an unsolicited proposal for maintenance and renovations, prompting the solicitation. 

The project would be the first social infrastructure public-private partnership for the district. The private partner would fully renovate the building including both interior and exterior rehabilitation along with replacing all major systems, security improvements, new training space and parking. Responses are due June 11 and the RFAP-Q requires interested teams to share their capabilities, reference past projects, and demonstrate their skills, experience and qualifications to manage a project of this scope.
TennesseeThe Tennessee Department of Transportation (TDOT) will begin a $130 million reconstruction project later this year on Interstate 440. The project is expected to take about 3 years to complete and includes reconstruction of lanes to reduce the number of potholes. The project will add additional lanes for drivers as well as bridge junctions to help traffic.  

Crews will start nightly lane-by-lane repairs on the interstate to affect the least amount of traffic as possible. To add more lanes, the median will need to be eliminated for safety reasons. There will also be new landscaping and noise walls. Bids for the project will be released this summer and will be awarded to the lowest bidder that can provide the shortest amount of work time. Construction is slated to start this fall. 
Georgia- The city of Lawrenceville debuted plans for a $26 million arts and cultural facility at a May city council meeting. The facility will cover 50,000 square feet with a 525-seat mainstage theater, a cabaret theater, education spaces and office spaces. The new facility will connect to the existing Aurora Theatre in the historic area of downtown. 

The Aurora Theatre has been noted for its economic impact and is the second largest performing arts theatre in the state of Georgia. A construction management request for proposals has been issued for the project and city officials will select a contract within 60 days. Construction on the facility is planned for 2019 and should be completed by 2020.
Massachusetts- The Pittsfield Municipal Airport is currently undergoing $7 million in runway reconstruction, but local officials have more projects planned. In addition to expanding runways, the airport is also in need of expanding its hangars, as it is currently turning away requests due to a lack of space. 

Around 51 planes and a dozen jets reside at the airport and more people are requesting hangar space. With a tight budget, the airport is considering a public-private partnership (P3) for hangar expansions. The airport does not currently have a timeline for the project, but officials cite the urgency of the expansion to increase airport revenue.
California- The Sonoma County Board of Supervisors is looking at four separate locations for a new 500,000-square-foot facility to house county staff. The multiple office buildings the county currently utilizes are 50-60 years old and have a maintenance backlog of over $250 million. Moving from the current site would open space in Santa Rosa to help tackle the affordable housing problem. 

The current north Santa Rosa government campus will be redeveloped into 1,400 housing units. That would cover 60 percent of the 47 acres. The cost for redeveloping the old campuses into housing is estimated around $349 million. The county is considering a public-private partnership for the project.
Washington, D.C.- The National Park Service in partnership with the United States Department of Transportation's Maritime Administration will provide $2.6 million in maritime heritage grants to assist funding 34 preservation and education projects in 14 states and the Northern Mariana Islands. 

The Maritime Museum Association of San Diego will receive $200,000 for a preservation project to ensure the long-term integrity of the sailing ship Star of India. The Destroyer Escort Historical Museum in New York will receive $200,000 for shipyard repair of the USS Slater's mast and hull. The Virginia V Foundation in Washington State will receive $200,000 to reframe the stern of the SS Virginia V. The town of Swan's Island in Maine will receive $85,000 for the Burnt Coat Harbor Light Station light tower restoration. View the complete list of projects here.
Michigan- After public input on a statewide rail plan, Traverse City is looking into passenger rail access to the city and a public-private partnership (P3) may be the answer. There are tracks in place, but the rails haven't been used for passenger trains for over 52 years. The tracks are currently used to run freight trains and the railroad company pays for the upkeep. 

The study has looked at varying levels of service, from special event trains to regular service at 60, 90 or 110 mph. Early findings show such a rail would help with the roughly 3.8 million summer tourists that visit the area and a train that could travel up to 110 mph could operate with break-even finances. The tracks need work to accommodate passenger service and the city is looking at federal and state dollars to cover the cost.
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Wisconsin- Last week, Green Bay's Residential Authority issued a request for proposals for a mixed-use building to replace the Adams Street parking lot. The building will include commercial space on the first floor with housing on upper floors. The 1.5-acre site is expected to create up to $20 million in new property value. 

Due to a loss of 121 parking spaces, the proposal requires plans for 100 public parking stalls in addition to the number of spaces the building's tenants would use. Responses are due by Aug. 24.
Kentucky- Kentucky is moving forward with plans to redevelop the Capital Plaza area starting in 2020. State officials are currently deciding between two private redevelopment options- a public-private partnership (P3) or by declaring the property a surplus and seeking bids to purchase the land. The most recent proposal from the state includes transferring 6.4 acres to a private developer. 

The timeline for redevelopment includes a June 30 deadline for local government to submit a proposed method of redevelopment. The deadline for local governments to submit their plan for redevelopment is Aug. 1, 2019 with a final contract date of March 20, 2020.
Washington, D.C.- Ten states have been selected to conduct flight tests on drones as part of the Unmanned Aircraft Systems (UAS) Integration Pilot Program. The program will help the Federal Aviation Administration tackle the most significant challenges to integrating drones into the national airspace and will reduce risks to public safety and security. The pilot program will be conducted over the next two-and-a-half years. Selectees will collect drone data involving night operations, flights over people and beyond the pilot's line of sight, package delivery, detect-and-avoid technologies and the reliability and security of data links between pilot and aircraft.

Data collected will assist the FAA in establishing rules that allow more complex low-altitude operations. It will also help identify ways to balance local and national interests related to UAS integration, improve communications with local, state and tribal jurisdictions, address security and privacy risks, and accelerate the approval of operations that currently require special authorizations. The chosen areas include the Choctaw Nation of Oklahoma; Durant, Okla.; San Diego, Calif.; Herndon, Va.; Reno, Nev.; Fairbanks, Ala.; Kansas; North Carolina; North Dakota; Florida and Tennessee.
Maine- Last week, the York County Commissioner heard plans for the future courthouse expansion project. The Alfred courthouse was built in 1806, expanded in the 1850s and then rebuilt in 1934 following a fire. The courthouse is overcrowded, poses security risks, has no conference room and has courtrooms that are not equipped with necessary technology. 

The new area will house a consolidated emergency communications center. Additionally, a new basement will allow for storage of mechanical equipment needed for the center. The basement will also house a new evidence storage room and ventilation system. Electrical issues with the courthouse have created the need for extra work, planning and adjustments. This might cost the county a little over what was originally planned. The county commission expects construction bids to be out by late June or early July.
New York- The Niagara Frontier Transportation Authority (NFTA), operator of Buffalo's commuter bus and rail lines, wants to redevelop all of its train stations in the city north of the Buffalo Niagara Medical Campus. The stations include Summer-Best, Utica, Delavan College, Humboldt-Hospital, Amherst, LaSalle and University, as well as the headquarters building at 181 Ellicott St., the transit police facility at 1404 Main St. and the soon-to-be-developed DL&W Terminal at the foot of Main, near Canalside. The agency's goal is to create mixed-use, transit-oriented projects that would incorporate the current stand-alone stations into larger facilities that would make better use of the space as places for people to live, eat and shop - while encouraging more transit riders. 

NFTA, last fall, hired an adviser/consultant for the project who is issuing a request for qualifications on NFTA's behalf. The plan is to gauge an interest in the projects from developers. Within six months, NFTA plans to issue a request for proposals for redevelopment for each of the stations.
New York- The Utica Harbor Point Development Corporation (UHPDC) has released a request for proposals to develop a more than 17-acre site. The Harbor Point Master Plan calls for a preferred mixed-use project including residential upper-floor apartments with retail and commercial uses. The development would also include parking on the ground floor. Proposals are due by July 27.
Hawaii- In 2017, the Navy commissioned a study of Fort Kamehameha to see if the outdated and rundown military homes could be turned into a productive redevelopment using a public-private partnership (P3). The results of the study are due out in 2019 but in the meantime Joint Base Pearl Harbor/Hickman officials are considering the best use of the land. 

Citing a shortage of affordable housing on the Island, a housing development is at the top of the list. Some of the current homes that reside in the Little Makalapa Historic District where built in 1916 while others were built in 1941.
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CALENDAR OF EVENTS

June 13 and 14
Inframation's U.S. P3 Infrastructure Forum of 2018 will be held June 13-14 at The Hilton Midtown, New York. Heading into its fourteenth year, the event will bring together infrastructure developers, investors, financiers, state and federal public officials and regional transportation authorities for two days of panel discussions, keynote presentations and valuable networking. 

Senior delegates from the United States, Canada, Europe, Australia and Latin America will attend to discuss what is happening across the country and the issues that are shaping the industry's future. Registration is open for the conference here. View more details here or contact eventmail@inframationgroup.com.
July 23 and 24
The P3 Airport Summit will be held July 23 and 24 at the Manchester Grand Hyatt, 1 Market Place, San Diego, Calif. Several speakers, including Mary Scott Nabers, will examine airport infrastructure challenges faced nationwide and offer lessons learned and best practices in project delivery, procurement and life-cycle asset management. The event will provide keynotes, case studies, panels, workshops and diverse networking opportunities. 

Attendees with little experience in the development and operation of the P3 model will benefit from industry experts presenting their knowledge and valuable insights into market trends crucial for business decisions. Attendees include senior management from firms in the construction, engineering, architecture, legal, investment and consulting industries as well as senior business and facility administrators from airports. Join over 1,000 industry leaders, public owners and stakeholders for this two-day event with a packed agenda. Register for the summit here
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PEOPLE ON THE MOVE

- Sean Crawford was named chief investment officer (CIO) of the $34 billion Connecticut Retirement Plans & Trust Funds. On May 14, he replaced Laurie Martin, deputy CIO, who took on the role on an interim basis in February 2017 after Deborah Spalding resigned as the CIO. 
- Liza Lowery Massey has been named Marin County's new chief of the Department of Information Services and Technology (IST) in California. Massey begins her new position May 21. Assistant County Administrator Dan Eilerman has served as IST's interim director since January. Marin's former chief information officer (CIO), Charlie Haase, took the position of CIO for Modesto in January. Haase had been with Marin County since November 2012. 
- Corpus Christi City Manager Margie Rose has resigned, effective May 16, 2018. Rose was hired as the city manager in July 2016 after working as the assistant city manager and deputy city manager. Assistant City Manager Keith Selman will now serve as the interim city manager.
- RaShall M. Brackney has been chosen as the next chief of the Charlottesville Police Department in Virginia. She is a retired 30-year veteran of the Pittsburgh Bureau of Police and a former chief of the George Washington University Police Department. She will begin work for the city on June 18. Brackney succeeds interim Chief Thierry Dupuis.
- Konrad Hildebrandt, who most recently worked as an assistant city manager in Odessa, Texas, has been hired as Riverton's new city manager in Utah. Hildebrandt worked as a city manager in both Cedar Hills in Utah County and Washington Terrace in Weber County. He began his duties April 30. 
- New Jersey Chief Technology Officer (CTO) Dave Weinstein, who became the state's first-ever CTO in June 2016 by Gov. Chris Christie, confirmed that Jan. 15 will be his last day in the position, as a new administration prepares to take office. Weinstein's previous positions was with the state Office of Homeland Security and Preparedness, where he had been its chief information security officer and chief cybersecurity director.
- Vicki Fuller, chief investment officer of the New York State Common Retirement Fund, Albany, will retire this summer after having served in the post for six years. The pension fund's search for a successor or a timetable for hiring a new CIO is unknown. Fuller plans to stay to help with the transition. 
- New Mexico State University regents announced the appointment of John Floros as the next university president. Floros is the dean of the college of agriculture at Kansas State University. He will replace Chancellor Garrey Carruthers who announced he will be retiring July 1. 
- The New York State Office of Parks, Recreation and Historic Preservation has announced that Mark Thomas, who has served as the Western District Director for State Parks since 2007, will retire in May 2018. Before Thomas was the Western District Director, he was Chautauqua County executive for two terms. Thomas will be replaced by Mark Mistretta, who currently serves as Capital Facilities Manager for State Parks Western District. 
- L. Marshall Washington has been chosen to lead Kalamazoo Valley Community College. He's currently president of New River Community and Technical College in West Virginia, where he's worked since March 2013. Washington begins his new position in Michigan July 1. 
- Charles Hartgrove was appointed as the next chief deputy commissioner of the Virginia Department of Taxation. Hartgrove resigned as the Lynchburg deputy city manager April 25 after serving for less than two years. 
- Virginia Pressler, head of the Hawaii State Department of Health, will retire at the end of this month. Pressler has led the agency since December 2014. Bruce Anderson will serve as the agency's interim director. Anderson has served as the administrator of the state Division of Aquatic Resources since late 2015. 
- Jeff Meisel, director of Bowling Green's finance department, has been chosen as the next city manager in Kentucky. He replaces Kevin DeFebbo who retired this year after leading the day-to-day operations of the city for 12 years. 
- Federico Zaragoza has been appointed as the president of the College of Southern Nevada. His contract will run from Aug. 15 through to June 30, 2021. Zaragoza is currently the vice chancellor for economic and workforce development at Alamo Community Colleges in Texas. 
- Lee Smithson, the executive director of the Mississippi Emergency Management Agency, has resigned as of May 11. Smithson assumed the role with MEMA in February 2016. 
- Edna Baehre-Kolovani, the president of Tidewater Community College (TCC) has announced her retirement after six years of leading TCC. Baehre-Kolovan plans to retire as TCC's fifth president on July 1. She's served in the position since 2012. An interim president for TCC will be announced soon and then a national search for the next permanent president will take place. 
- Ted Eliopoulos, chief investment officer (CIO) of the California Public Employees' Retirement System (CalPERS) is leaving the pension fund in order to relocate to the East Coast. Eliopoulos will remain CIO until a replacement is named and will assist in the transition through the end of 2018. Eliopoulos joined CalPERS in 2007 as senior investment officer for the Real Estate division and the Real Assets unit.  
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